GBPUSD: Curve Analysis (12H)

SUMMARY:
The GBP/USD is currently in a downtrend, with immediate support at 1.2830. A break below this level could accelerate losses to 1.2800–1.2790. However, a sustained move above 1.2880 could signal a potential reversal of the trend.

TREND
The British pound has experienced a downturn since its peak around July 17th. Economic data indicating a resilient UK economy, including higher-than-expected inflation and steady wage growth, fueled the initial surge, but subsequent factors have contributed to the pound's decline.

Profit-taking after the significant rally, a strengthening US dollar, and lingering concerns about the UK economy have all played a role in the GBP/USD's weakening.

TECHNICAL ANALYSIS
Recent Price Action: The Relative Strength Index (RSI) on the 4-hour chart has turned south, falling below 40, suggesting a loss of buyer momentum. Additionally, the GBP/USD pair lost traction after testing the key resistance level at 1.2880, where the descending trend line, Fibonacci 38.2% retracement level of the latest uptrend, and the 100-period Simple Moving Average (SMA) converge.

SUPPORT:
The immediate support level is 1.2830 (Fibonacci 50% retracement). Further support lies at 1.2800–1.2790 (psychological level, 200-period SMA). 1.2750 is a MAJOR support level.

RESISTANCE:
The initial resistance is at 1.2880 (Fibonacci 38.2% retracement, descending trend line).
The subsequent resistance levels are 1.2900 (psychological level, static level, 100-period SMA) and 1.2940 (Fibonacci 23.6% retracement).